Calculate the total cost for two different delivery options for 1200 boxes. Option A charges R18.50 per box. Option B charges R10,000 for up to 800 boxes and R25 for each additional box.

Here are the calculations for the delivery options. a) Calculate the total cost of using Option A to transport all 1200 boxes. Step 1: Identify the cost per box for Option A. Option A charges R18.50 per box. Step 2: Calculate the total cost for 1200 boxes. Cost_Option A = Number of boxes × Cost per box Cost_Option A = 1200 × R18.50 Cost_Option A = R22200 The total cost for Option A is R22200. b) Calculate the total cost of using Option B. Step 1: Identify the flat rate and additional box charge for Option B. Option B charges a flat rate of R10 000 for up to 800 boxes. Any additional box is charged at R25 per box. Step 2: Calculate the number of additional boxes. Total boxes = 1200. Boxes covered by flat rate = 800. Additional boxes = 1200 - 800 = 400 boxes. Step 3: Calculate the cost for the additional boxes. Cost_additional = Number of additional boxes × Cost per additional box Cost_additional = 400 × R25 Cost_additional = R10000 Step 4: Calculate the total cost for Option B. Cost_Option B = Flat rate + Cost_additional Cost_Option B = R10000 + R10000 Cost_Option B = R20000 The total cost for Option B is R20000. c) Based on cost alone, which option is more affordable? Step 1: Compare the total costs of Option A and Option B. Cost of Option A = R22 200. Cost of Option B = R20 000. Step 2: Determine the more affordable option. Since R20 000 < R22 200, Option B is more affordable. Based on cost alone, Option B is more affordable. d) If the company values faster delivery and is willing to pay up to R2 500 extra for same-day delivery, which option should they choose? Justify your answer. Step 1: Determine the difference in cost between Option A and Option B. Cost difference = Cost_Option A - Cost_Option B Cost difference = R22200 - R20000 Cost difference = R2200 Option B is R2200 cheaper than Option A. Step 2: Consider the delivery times and the company's willingness to pay for faster delivery. Option A delivers in 2 days. Option B delivers in 1 day (faster delivery). The company is willing to pay up to R2 500 extra for same-day delivery (which Option B provides). Step 3: Compare the cost difference with the acceptable extra payment. The actual cost difference is R2200 (Option B is cheaper by this amount). Since Option B is R2200 cheaper and provides faster delivery (1 day vs 2 days), it is within the company's willingness to pay up to R2500 extra for faster delivery. In fact, they save money while getting faster delivery. The company should choose Option B. This is because Option B delivers in 1 day, which is faster than Option A's 2 days, and it is also R2200 cheaper. This saving is well within the R2500 extra the company is willing to pay for faster delivery. 3 done, 2 left today. You're making progress.